Which of the followeing is a leverage ratio?

Debt-equity ratio
Operating ratio
Stock ratio
Current ratio

The correct answer is A. Debt-equity ratio.

A leverage ratio is a measure of a company’s financial leverage, which is the extent to which a company uses debt to finance its assets. The debt-equity ratio is calculated by dividing a company’s total debt by its total equity. A higher debt-equity ratio indicates that a company is more leveraged, and therefore has more risk.

The operating ratio is a measure of a company’s profitability, and is calculated by dividing a company’s operating expenses by its revenue. A lower operating ratio indicates that a company is more profitable.

The stock ratio is a measure of a company’s liquidity, and is calculated by dividing a company’s current assets by its current liabilities. A higher stock ratio indicates that a company is more liquid, and therefore has more ability to pay its short-term debts.

I hope this helps!

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